Teledyne Technologies (TDY) Q4 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Teledyne Technologies Incorporated (NYSE:TDY) is scheduled to report Q4 earnings results on Wednesday, January 22, 2020, at 8:00 a.m. Pacific.

The company is expected to report earnings of $2.73/share on revenue of $825 million. The consensus earnings per share (EPS) of $2.73/share is based on a poll of 3 analysts and represents a growth of 17.6% over the same quarter last year when the company reported earnings of $2.32/share.

The revenue forecast of $825 million based on a poll of 5 analysts implies a year-over-year (YoY) growth of 10.2%. Last year the company reported $748.4 million in revenue for the quarter.

Expected to report EPS growth of $0.41/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $825.00 $748.40 10.2%
EPS $2.73 $2.32 17.6%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Teledyne Technologies for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $2.46 $2.57 4.4% Beat
Q2, 2019 $2.42 $2.68 10.8% Beat
Q1, 2019 $1.90 $1.99 5.2% Beat
Q4, 2018 $2.19 $2.32 6.0% Beat
Q3, 2018 $2.06 $2.53 23.0% Beat
Q2, 2018 $1.88 $2.32 23.4% Beat
Q1, 2018 $1.55 $1.81 16.8% Beat
Q4, 2017 $1.72 $1.95 13.4% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending September 29, 2019, the stock price reacted by increasing by 7.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-23 $311.65 $333.58 7.0% Increase
2019-07-24 $281.99 $296.26 5.1% Increase
2019-04-24 $252.72 $247.73 -2.0% Decline
2019-01-23 $217.39 $227.06 4.4% Increase

Fundamentals And Technical Analysis

Teledyne Technologies is currently trading at $376.88/share, down -0.2% for the day. The stock is trading at approximately 99.1% of its 52-week high of $380.45/share. The company’s stock price is up 13.0% since the last earnings report and up 1.9% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 79.08 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:TDY Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 36.4x and a forward P/E multiple of 36.9x. Teledyne’s current share price also implies a price-to-book (P/B) multiple of 5.3x. The following table summarizes some other key fundamental ratios:

Data as of January 20, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 29, 2019
Stock Price (Current) $376.88
P/E Ratio 36.4x
P/E Ratio (Fwd) 36.9x
PEG Ratio 2.7
Total Debt to Capital (%) 7.2%
Levered Free Cash Flow $356.5 million
Enterprise Value / EBITDA 24.4x

Source: Finbox

Company Profile: Teledyne Technologies Incorporated

Teledyne Technologies Incorporated is a large-cap stock with a market capitalization of $13.745 billion and a total enterprise value of $14.683 billion. The company operates in the Industrials sector and the Aerospace & Defense industry.

Teledyne Technologies Incorporated provides instrumentation, digital imaging, aerospace and defense electronics, and engineered systems in the United States, the United Kingdom, Denmark, Canada, France, and the Netherlands.

The company’s Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks deployed in mission-critical and harsh environments.

Its Digital Imaging segment provides image sensors and digital cameras for use in industrial, scientific, and medical applications; and hardware and software for image processing and automatic data collection in industrial and medical applications, as well as manufacturing services for micro-electro-mechanical systems. This segment also offers light detection and ranging systems; focal plane arrays, sensors, and subsystems; and geospatial software products. The company’s Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics; environment interconnects; data acquisition and communications equipment for aircraft; components and subsystems for wireless and satellite communications; and general aviation batteries.

Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and small gas turbine engines.

The company markets and sells its products and services through sales forces, third-party distributors, and commissioned sales representatives.

Teledyne Technologies Incorporated was founded in 1960 and is headquartered in Thousand Oaks, California.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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